{"id":21386,"date":"2024-04-15T06:05:32","date_gmt":"2024-04-15T06:05:32","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=21386"},"modified":"2024-04-15T06:05:32","modified_gmt":"2024-04-15T06:05:32","slug":"gross-domestic-capital-formation-is-defined-as-a-flow-of-expenditure-devoted-to-increased-or-maintaining-of-the-capital-stock-b-expenditure-incurred-on-physical-assets-only-c-production-exceeding-d","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/gross-domestic-capital-formation-is-defined-as-a-flow-of-expenditure-devoted-to-increased-or-maintaining-of-the-capital-stock-b-expenditure-incurred-on-physical-assets-only-c-production-exceeding-d\/","title":{"rendered":"Gross domestic capital formation is defined as A. flow of expenditure devoted to increased or maintaining of the capital stock B. expenditure incurred on physical assets only C. production exceeding demand D. net addition to stock after depreciation"},"content":{"rendered":"<p>\r\n    <!-- Check if it's an AMP page -->\r\n            <!-- Non-AMP version -->\r\n        <div class=\"mcq-container\" data-quiz-id=\"quizState_6a9880ffda7de\">\r\n                                            <div class=\"option\" data-option-key=\"option1\" data-is-correct=\"true\">\r\n                    flow of expenditure devoted to increased or maintaining of the capital stock                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option2\" data-is-correct=\"false\">\r\n                    expenditure incurred on physical assets only                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option3\" data-is-correct=\"false\">\r\n                    production exceeding demand                <\/div>\r\n                                            <div class=\"option\" data-option-key=\"option4\" data-is-correct=\"false\">\r\n                    net addition to stock after depreciation                <\/div>\r\n                            \r\n            <!-- Feedback messages for non-AMP -->\r\n            <div class=\"feedback\" data-feedback=\"wrong\">Answer is Right!<\/div>\r\n            <div class=\"feedback\" data-feedback=\"right\">Answer is Wrong!<\/div>\r\n        <\/div>\r\n\r\n        <script>\r\n        document.addEventListener('DOMContentLoaded', function () {\r\n            var containers = document.querySelectorAll('.mcq-container');\r\n\r\n            containers.forEach(function(container) {\r\n                var options = container.querySelectorAll('.option');\r\n                var feedbackSelect = container.querySelector('[data-feedback=\"select\"]');\r\n                var feedbackWrong = container.querySelector('[data-feedback=\"wrong\"]');\r\n                var feedbackRight = container.querySelector('[data-feedback=\"right\"]');\r\n\r\n                options.forEach(function(option) {\r\n                    option.addEventListener('click', function() {\r\n                        var selectedOption = option.getAttribute('data-option-key');\r\n                        var isCorrect = option.getAttribute('data-is-correct') === 'true';\r\n\r\n                        \/\/ Remove previous selections\r\n                        options.forEach(function(opt) {\r\n                            opt.classList.remove('correct', 'incorrect');\r\n                        });\r\n\r\n                        \/\/ Add the correct\/incorrect class\r\n                        if (isCorrect) {\r\n                            option.classList.add('correct');\r\n                            feedbackRight.hidden = false;\r\n                            feedbackWrong.hidden = true;\r\n                        } else {\r\n                            option.classList.add('incorrect');\r\n                            feedbackRight.hidden = true;\r\n                            feedbackWrong.hidden = false;\r\n                        }\r\n\r\n                        \/\/ Hide select feedback\r\n                        feedbackSelect.hidden = true;\r\n                    });\r\n                });\r\n            });\r\n        });\r\n        <\/script>\r\n    \r\n    <!--more--><\/p>\n<p>The correct answer is: <strong>A. flow of expenditure devoted to increased or maintaining of the capital stock<\/strong><\/p>\n<p>Gross domestic capital formation (GDCF) is the total value of all new fixed assets created within a country&#8217;s borders in a given year. It includes expenditure on new construction, machinery and equipment, and intellectual property products. GDCF is a key measure of economic activity, as it reflects the amount of investment that businesses and households are making in the future.<\/p>\n<p>Option B is incorrect because it only includes expenditure on physical assets. GDCF also includes expenditure on intellectual property products, such as patents and trademarks.<\/p>\n<p>Option <div class=\"youtube-subscribe-container\">\r\n        <a href=\"https:\/\/www.youtube.com\/channel\/UCNHT8lW-JmLC68rjBfZhdkg?sub_confirmation=1\" target=\"_blank\" class=\"youtube-subscribe-button\">\r\n            <span class=\"youtube-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 576 512\">\r\n                    <path d=\"M549.7 124.1c-6.3-23.7-24.8-42.3-48.3-48.6C458.8 64 288 64 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Subscribe on YouTube\r\n        <\/a>\r\n    <\/div> C is incorrect because it is not a measure of investment. Production exceeding demand would lead to a build-up of inventories, which is not considered to be investment.<\/p>\n<p>Option D is incorrect because it is not a measure of investment. Net addition to stock <div class=\"telegram-channel-container\">\r\n        <a href=\"https:\/\/t.me\/pscnotes2025\" target=\"_blank\" class=\"telegram-channel-button\">\r\n            <span class=\"telegram-icon\">\r\n                <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 496 512\">\r\n                    <path fill=\"white\" d=\"M248,8C111,8,0,119,0,256s111,248,248,248s248-111,248-248S385,8,248,8z M362,177L320,367c-3,14-10,18-20,14l-56-41l-27,26 c-3,3-5,5-10,5l4-63L323,196c5-5-1-7-8-3l-98,62l-42-13c-9-3-10-9,2-14l162-63C351,160,365,164,362,177z\"\/>\r\n                <\/svg>\r\n            <\/span>\r\n            Join Our Telegram Channel\r\n        <\/a>\r\n    <\/div> after depreciation is a measure of the change in the capital stock, not the amount of investment.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Join Our Telegram Channel Subscribe on YouTube<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[207],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Gross domestic capital formation is defined as A. flow of expenditure devoted to increased or maintaining of the capital stock B. expenditure incurred on physical assets only C. production exceeding demand D. net addition to stock after depreciation<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/gross-domestic-capital-formation-is-defined-as-a-flow-of-expenditure-devoted-to-increased-or-maintaining-of-the-capital-stock-b-expenditure-incurred-on-physical-assets-only-c-production-exceeding-d\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Gross domestic capital formation is defined as A. flow of expenditure devoted to increased or maintaining of the capital stock B. expenditure incurred on physical assets only C. production exceeding demand D. net addition to stock after depreciation\" \/>\n<meta property=\"og:description\" content=\"Join Our Telegram Channel Subscribe on YouTube\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/gross-domestic-capital-formation-is-defined-as-a-flow-of-expenditure-devoted-to-increased-or-maintaining-of-the-capital-stock-b-expenditure-incurred-on-physical-assets-only-c-production-exceeding-d\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T06:05:32+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Gross domestic capital formation is defined as A. flow of expenditure devoted to increased or maintaining of the capital stock B. expenditure incurred on physical assets only C. production exceeding demand D. net addition to stock after depreciation","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/gross-domestic-capital-formation-is-defined-as-a-flow-of-expenditure-devoted-to-increased-or-maintaining-of-the-capital-stock-b-expenditure-incurred-on-physical-assets-only-c-production-exceeding-d\/","og_locale":"en_US","og_type":"article","og_title":"Gross domestic capital formation is defined as A. flow of expenditure devoted to increased or maintaining of the capital stock B. expenditure incurred on physical assets only C. production exceeding demand D. net addition to stock after depreciation","og_description":"Join Our Telegram Channel Subscribe on YouTube","og_url":"https:\/\/exam.pscnotes.com\/mcq\/gross-domestic-capital-formation-is-defined-as-a-flow-of-expenditure-devoted-to-increased-or-maintaining-of-the-capital-stock-b-expenditure-incurred-on-physical-assets-only-c-production-exceeding-d\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T06:05:32+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/gross-domestic-capital-formation-is-defined-as-a-flow-of-expenditure-devoted-to-increased-or-maintaining-of-the-capital-stock-b-expenditure-incurred-on-physical-assets-only-c-production-exceeding-d\/","url":"https:\/\/exam.pscnotes.com\/mcq\/gross-domestic-capital-formation-is-defined-as-a-flow-of-expenditure-devoted-to-increased-or-maintaining-of-the-capital-stock-b-expenditure-incurred-on-physical-assets-only-c-production-exceeding-d\/","name":"Gross domestic capital formation is defined as A. flow of expenditure devoted to increased or maintaining of the capital stock B. expenditure incurred on physical assets only C. production exceeding demand D. net addition to stock after depreciation","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-15T06:05:32+00:00","dateModified":"2024-04-15T06:05:32+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/gross-domestic-capital-formation-is-defined-as-a-flow-of-expenditure-devoted-to-increased-or-maintaining-of-the-capital-stock-b-expenditure-incurred-on-physical-assets-only-c-production-exceeding-d\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/gross-domestic-capital-formation-is-defined-as-a-flow-of-expenditure-devoted-to-increased-or-maintaining-of-the-capital-stock-b-expenditure-incurred-on-physical-assets-only-c-production-exceeding-d\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/gross-domestic-capital-formation-is-defined-as-a-flow-of-expenditure-devoted-to-increased-or-maintaining-of-the-capital-stock-b-expenditure-incurred-on-physical-assets-only-c-production-exceeding-d\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"mcq","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/"},{"@type":"ListItem","position":3,"name":"Indian Economy","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/mcq\/indian-economy\/"},{"@type":"ListItem","position":4,"name":"Gross domestic capital formation is defined as A. flow of expenditure devoted to increased or maintaining of the capital stock B. expenditure incurred on physical assets only C. production exceeding demand D. net addition to stock after depreciation"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/d97f17072bfa490596c8f78363955d55?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/d97f17072bfa490596c8f78363955d55?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/21386"}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=21386"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/21386\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=21386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=21386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=21386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}